it helps in decision making which is directly related to resource planning and execution of tasks. For instance, by using a proper leave management software, a company can decide who it can give leaves to, how many days of paid leave an employee has already used or the if the number of remaining leaves are  enough to let him take a leave without resulting in a pay cut. Gone are the days when simple word of mouth won't suffice. One needs to have every employee centric detail in a database from which details pertaining to one's salary, to leave balance to any performance related documentation can be accessed with ease.

When a data source is readily available, the company is able to save a considerable amount of time in matters of decision making. Having inadequate information or incorrectly related information will most definitely lead to poor decision making. But with a good quality human resource management systems software in place all such flaws can be avoided. A good quality HRMS allows the organisation to enter a series of relevant information to be updated at one go. A simple click of a mouse can open the annals of the data thus entered, thereby influencing the decision making capabilities of the company's decision makers.

Since manual record keeping consumes a lot of time, a well developed HRMS allows to save time and use thus freed up time and employees in more meaningful tasks. This is also a self serving portal where employees can access information about themselves, for instance, if one wants to figure out why they received a certain deduction in the pay check for the month, they can locate the details in the employee data section or find out how they have ranked in the performance management section.

In this context, performance management software is equally important as it lets an employee access his work rankings plus important feedback that he can expect from his supervisors. This system also comes in handy, when a company wants to check at a glance how an employee had  been performing throughout his tenure with the organization to see if he is fit to be promoted.

Though companies may feel unsure about investing in a new tool, they can do so without any doubts because a successful HRMS software eventually shows great returns inspite of the large initial investment. Plus, with the use of this software, many analysis and reports are generated automatically by the tool and the company doesn't have to hire additional staff for analysis or publishing results.